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Original poster

Anyone noticed the market has changed?

787 replies

yaxe · 16/06/2022 18:17

We are in the process of buying (have sold) & it was mad in March, lots of overbidding etc. I've noticed now reductions & stuff is staying on rather than going in a wk. It's making me a bit nervous tbh.

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HikerSpiker · 17/06/2022 21:53

Also people who got an AIP 2 months ago, may get a shock when they realise their monthly repayments on the mortgage, if / once secured, are higher than they thought they would be. 10 year fix with a 40% deposit has gone up 0.75% in 6 weeks and are likely to go up at least another 0.5% in the next 6.

WimbyAce · 17/06/2022 22:15

Yes stuff is taking longer to move now and have also seen more reductions, properties coming back on the market. I would say def cooling.

HikerSpiker · 17/06/2022 22:19

I think for the reasons below, we're going to see a lot of broken chains.

Riverlee · 17/06/2022 22:22

A neighbours house sold within two weeks, and had four asking price offers (Kent).

Original poster
yaxe · 17/06/2022 22:27

Supply definitely increased where I am so that's why although reading the news if you were thinking of selling makes sense to do it asap.

I knew there were some issues with valuations coming back lower where we are.

@HikerSpiker Yes I think that might start to be an issue. We are very straightforward borrowers & the lender wanted so much info, plus they are pricing in all the other increases. We had a AIP & ended up borrowing a bit less to get the same repayment as rates had increased & we wouldn't get that one now.
Last yr we would have borrowed max & bought top budget whereas I started to get more cautious & have reigned things back & bought a cheaper house.

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Original poster
yaxe · 17/06/2022 22:28

I just can't cope with chains 😖

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Ylvamoon · 17/06/2022 22:29

The interest rate has been raised... this will definitely have a knock on effect on the housing market.

WimbyAce · 17/06/2022 22:55

Interest rates def gonna be a factor. Our mortgage was agreed at Feb rates so I'm not gonna be happy if we have to reapply at the new rates if offer expires before completion.

HikerSpiker · 17/06/2022 22:59

The bad economic news has really ramped up over the last week or so. Interest rate rises, retail figures down, 2 months of GDP contraction, inflation higher than expected.

I doubt it's had an impact yet but could start to impact from now onwards. For the reasons I mentioned below. Like I said, I'm expecting to see SSTCs back on the market and broken chains.

I haven't got a clue though, I work I. Marketing not finance.

WimbyAce · 17/06/2022 23:02

Does all make me v nervous tbh and questioning whether we are doing the right thing. Imagine a lot of others in same boat. If all had gone to plan we should have been in by now but now we are in limbo with all the worrying news.

HikerSpiker · 17/06/2022 23:02

Employment is still high though and the jobs market seems buoyant. Although I do remember that changing almost overnight back in 2008.

In fact this seems like a re run of 2008 in some ways. Overheated housing and employment markets burst very quickly back then. Both seem overheated again now. Whether they will burst again is anyone's guess.

Original poster
yaxe · 17/06/2022 23:06

@WimbyAce tbh if ours runs out before we are in Im not sure what I will do, maybe wait till next yr.

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silverbubbles · 17/06/2022 23:07

I have definitely noticed that the houses at the top of the market are not moving quickly at all. This is in the south west. People are feeling uncertain now and the exodus to the country to work from home for the rest of your life is over now.

If you have already sold you could well be in a strong position now to wait for a bit and get something at a better price.

Original poster
yaxe · 17/06/2022 23:07

If the BOE are saying 11% inflation we know it will be much higher!

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WimbyAce · 17/06/2022 23:10

Our sale could complete but the rentals are either non existent or astronomical so we can't move out til we buy somewhere else.

alanabennett · 17/06/2022 23:10

I'm in the US and things are definitely cooling. The hike in interest rates obviously won't help - I think 30 year mortgages are around 6% at the moment. According to the NYT that's about an additional $1000 mortgage payment on a house bought for $750k with a 20% deposit.

FrecklesMalone · 17/06/2022 23:12

It's still crazy up in Manchester. House near me had a viewing today with about 30 couples!

Tiani4 · 17/06/2022 23:12

Everything is going quickly here - if it has space and nice garden (south England) and for offers over ...
it has calmed a bit since March but not much...!

About to put my house on the market to move so fingers crossed as it's a scary time!

DFOD · 17/06/2022 23:15

London zone 3 one bed flats, no outside space not shifting at all.

Nothappyatwork · 17/06/2022 23:31

Why would supply be increasing that makes absolutely no sense whatsoever, what could possibly cause that ?

In a recession people are gonna want to sit tight because they might not be able to remortgage their current loan - on paper they might not be able to afford their current house even though they actually are, they won’t want the additional costs involved in moving, if anything supply dips so if you think it’s hard to buy a house right now it’s only gonna get worse if you hang on, my advice would absolutely not be to go in to rented.

Wait until you have secured the chain, The actual numbers don’t matter providing you are buying and selling in the same market.

Original poster
yaxe · 18/06/2022 06:43

Well it definitely has increased supply wise near me, I think it makes sense. Things aren't bad yet but it's on the horizon. I think it's going to be bad next yr & perhaps 24 so if I was selling makes sense to do now if I don't want to wait till 25.

In a recession people are gonna want to sit tight because they might not be able to remortgage their current loan - on paper they might not be able to afford their current house even though they actually are, they won’t want the additional costs involved in moving,

The market is so varied that I'm not sure it's a blanket rule. Lots we have looked out are chain free with the owners moving to their 2nd home on the coast/country.

We are fortunate that we don't have to go into rented though so don't have that pressure.

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Original poster
yaxe · 18/06/2022 06:46

It's still crazy up in Manchester. House near me had a viewing today with about 30 couples!

I think Manchester will remain hot, it's more attractive to some younger people than London & to landlords.

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Original poster
yaxe · 18/06/2022 06:48

London zone 3 one bed flats, no outside space not shifting at all.

Yep, I can't see that market picking up for some while.

I'm in the US and things are definitely cooling. The hike in interest rates obviously won't help - I think 30 year mortgages are around 6% at the moment.

I didn't realise it was normal to have such long mortgages or maybe we are unusual here. But yes quite a hefty increase.

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JuneJubilee · 18/06/2022 07:00

HikerSpiker · 17/06/2022 21:50

I'm wondering if people are still bidding over asking but will get a shock when they try to secure the mortgage. Particularly those who are maxing out affordability, have low deposits and are self employed. Banks are tightening up lending due to interest rate rises and the cost of living going up. I suspect we'll see quite a few recent SSTC houses back on the market in the next month or so.

That's what's happening here (SE) & yet people are still
putting them back on, over priced. I guess in the hope of a naive cash buyer.

Ohthatsexciting · 18/06/2022 07:02

Location dependent

the genuinely covetable places to live with good amenities, thriving towns, great schools, green space and great transport links - will simply not see any deterioration or if it does happen… marginal.

i am in SE market town, close to London and tick all the above boxes. The market has been incredibly hot for years, it’s as hot as ever now and shows absolutely no indication of slowing down.

10 years ago we brought and it was sealed bids and ferociously competitive. Friends and family have brought every year since then in the area and experienced exactly the same or every more competitive every time